Government Notifies ITR Forms for Assessment Year 2026-27, Filing Season Begins
On March 30, 2026, the government officially notified the Income Tax Return (ITR) forms ITR-1 through ITR-7 for the assessment year 2026-27, marking the commencement of the annual tax filing season. Individuals, pensioners, professionals, and other taxpayers can now utilize the applicable forms to file their returns, with the deadline set for July 31, 2026.
Key Change in ITR-1 (Sahaj) for Two House Properties
A significant update this year involves ITR-1 (Sahaj), which now allows taxpayers to report income from up to two house properties. This change simplifies compliance for a broader range of individuals, as previously, ITR-1 only permitted reporting from one house property, requiring those with two properties to file more detailed forms like ITR-2 or ITR-3.
Chartered Accountant Ashish Niraj, Partner at A S N & Company, commented on this development: "One of the welcome changes in ITR-1 is that it can now be filed for income from two house properties. Earlier, ITR-1 allowed reporting income from only one house property, so taxpayers with two properties had to use ITR-2 or ITR-3, which are more detailed. With this adjustment, taxpayers will find it easier to file ITR-1 and report their income from two houses."
Eligibility Criteria for ITR-1 (Sahaj)
ITR-1 is designed for individuals with straightforward income profiles. However, it cannot be used if the taxpayer has any of the following:
- Profits and gains from business or profession
- Short-term capital gains
- Long-term capital gains under Section 112A exceeding Rs 1.25 lakh
- Income from more than two house properties (the limit has been relaxed from one to two)
- Income under "other sources" such as lottery winnings or racehorse activity
- Income taxable under special provisions like Sections 115BBDA or 115BBE
- Income to be apportioned under Section 5A
Who Should File ITR-2?
ITR-2 is applicable for individuals or Hindu Undivided Families (HUFs) who:
- Are not eligible to file ITR-1
- Do not have income from business or profession
- Do not earn income such as interest, salary, bonus, or commission from a partnership firm
- Have income of a spouse or minor child that needs to be clubbed
Who Cannot File ITR-2?
ITR-2 cannot be used by individuals or HUFs who have income from business or profession, including any income received from a partnership firm in the form of interest, salary, bonus, commission, or remuneration.
With the forms now officially notified, taxpayers are encouraged to begin their preparations for filing returns. The deadline for most individual filers remains July 31, 2026, ensuring ample time for compliance and accurate reporting.
